National Storage Affiliates Trust : Company Update January 2021

Company Update

January 2021

Forward-Looking Statements

and Non-GAAP Financial Measures

FORWARD-LOOKING STATEMENTS: We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, we intend to identify forward-looking statements. The forward-looking statements contained in this presentation reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed in any forward- looking statement.

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. Some of these factors are described in our annual report on Form 10-K filed with the SEC on February 26, 2020 (the "Annual Report") under the headings "business," "risk factors," "properties," and "management's discussion and analysis of financial condition and results of operations," as applicable, and our quarterly report on Form 10-Q filed with the SEC on November 6, 2020 under the headings "management's discussion and analysis of financial condition and results of operations" and "risk factors", as applicable. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation and the information contained herein are for informational purposes only and may not be relied upon for any purpose, including in connection with the purchase or sale of any of our securities. Such information does not constitute an offer to sell or a solicitation of an offer to buy any security described herein.

Non-GAAP Financial Measures: This presentation contains certain non-GAAP financial measures, such as funds from operations ("FFO"), Core FFO, net operating income ("NOI"), EBITDA, and Adjusted EBITDA, which are each defined in NSA's Annual Report. These non-GAAP financial measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentation of FFO, Core FFO, NOI, EBITDA, and Adjusted EBITDA herein are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP and should not be considered as alternative measures of liquidity. In addition, NSA's definitions and method of calculating these measures may be different from those used by other companies, and, accordingly, may not be comparable to similar measures as defined and calculated by other companies that do not use the same methodology as NSA. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures for the three months ended September 30, 2020 and 2019 are set forth in the Appendix attached hereto. In addition, reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures for the three months ended June 30, 2020, 2019, 2018, 2017, and 2016, March 31, 2020, 2019, 2018, 2017 and 2016, December 31, 2019, 2018, 2017, 2016 and 2015, and September 30, 2018, 2017 and 2016 are available in NSA's earnings releases for such period ends, which are furnished to the SEC quarterly as Exhibit 99.1 on Current Reports on Form 8-K pursuant to Item 2.02.

Information in this presentation is as of September 30, 2020, except as otherwise noted.

2 | JANUARY 2021

Contents

Company Update	4
Consistent Sector-Leading Results	8
Differentiated PRO Structure Drives Growth	12
Sector-Leading Growth Has Momentum	16
Supply Update	20
Flexible Capital Structure Supports Future Growth	22
Appendix (including Definitions and Methodology)	26

3 | JANUARY 2021

Company Update

NSA Snapshot as of September 30, 2020

219.5%

			Total Shareholder Return
			Since IPO
$5.8B			$4.5B
	Total Enterprise Value			Completed Acquisitions
							Since IPO(1)
788			13.4%			91.1%
Property Portfolio			Avg. Quarterly Y-O-Y Increase			Same Store Avg. Occupancy
			in Core FFO/Share Since IPO			In Q3 2020
49.5M			10.0%			0.2%
Rentable Square Feet			Y-O-Y Core FFO/Share Growth			Y-O-Y Same Store NOI Growth
			In Q3 2020				In Q3 2020

1. Since the Company's IPO at April 23, 2015 through September 30, 2020; includes ~$2.5 billion in wholly owned acquisitions and ~$2.0 billion in Joint Venture acquisitions.
2. Source: 2020 Self Storage Almanac

5 | JANUARY 2021

Well Diversified;

Located in

35

States +

Puerto Rico

Unique

Structure with

Participating

Regional

Operators

("PROs")

6th

Largest

U.S. Operator(2)

Size and Diversification Reduce Risk

35

States +

Puerto Rico

788

Properties

611 Wholly-

Owned

343 Managed by PROs

268 Managed by SecurCare/iStorage

177 Joint

Venture

All managed by iStorage/SecurCare (NSA has a 25% ownership interest in its two joint ventures)

% of NSA Properties	>10%	5-10%	2- 5%	< 2%

6 | JANUARY 2021

Environmental - Social - Governance

E

S

G

Highlights from our inaugural ESG report

• 300+ LED lighting retrofit projects completed
• Annual energy savings of 6 million annual kilowatt hours
• Water-savingplumbing devices & eco-friendly landscaping
• 35% of senior management (director level & above) are women
• Learning & Development dept. supports employee engagement
• History of charitable giving, volunteer work and donated storage units
• Independent (80%) and diverse (20% women) board of trustees
• Vendor attestation on ethical and environmental practices
• ESG Steering Committee formed in 2019

7 | JANUARY 2021

Consistent Sector-Leading Results

NSA's Transformational Growth Since IPO

NSA's PRO Model Drives All Aspects of Growth -

Facilitates Dividend and Core FFO per Share Growth Amid Current Recession

Growth in Total Properties			Growth in Core FFO/Share
and Rentable Square Feet				and Dividend/Share
900						54.0	$0.50						$0.50
800						48.0	$0.45						$0.45
					$0.40						$0.40
700						42.0
					$0.35						$0.35
600						36.0
					$0.30						$0.30
500						30.0
					$0.25						$0.25
400						24.0
					$0.20						$0.20
300						18.0
					$0.15						$0.15
200						12.0
					$0.10						$0.10
100						6.0	$0.05						$0.05
0							-	$-							$-
Q2-15Q4-15Q2-16Q4-16Q2-17Q4-17Q2-18	Q4-18Q2-19Q4-19Q2-20				Q2-15Q4-15Q2-16Q4-16Q2-17Q4-17Q2-18	Q4-18Q2-19Q4-19Q2-20
			# Properties		RSF (MM)						Core FFO/share			Dividend/Share

Growth in Total Enterprise Value

and Share Price

$7.0					$40.00
$6.0					$35.00
$5.0					$30.00
			$25.00
$4.0
		$20.00
$3.0
		$15.00
$2.0
		$10.00
$1.0
		$5.00
$-					$-
		Q2-15Q4-15Q2-16Q4-16Q2-17Q4-17Q2-18Q4-18Q2-19Q4-19	Q2-20
			Total Enterprise Value ($BN)		Share Price

84% Growth in Quarterly Dividend per Share Since IPO(1)

1. Based on Q4 2020 quarterly dividend per share of $0.35, and Q2 2015 quarterly dividend rate of $0.19.

9 | JANUARY 2021

NSA Has Consistently Outpaced REIT Peers Since IPO

Twenty-Two Quarters of Performance Since IPO - through September 30, 2020(1)

Average Same Store	Average Core FFO	Stock Price Performance	Total Shareholder Return
NOI Growth(2)	Per Share Growth(2)

8.0%	6.8%		16.0%	13.4%			180.0%	151.6%					300.0%
7.0%		14.0%	12.1%		160.0%						219.5%
							250.0%
	5.6%
6.0%	12.0%		140.0%
5.0%	4.7%		10.0%				120.0%						200.0%
3.8%	8.0%
				100.0%
4.0%	8.0%									150.0%
								59.8%
		2.6%			4.9%	4.7%	80.0%							94.3%
3.0%		6.0%		60.0%		36.3%			100.0%	67.7%
2.0%		4.0%		40.0%		15.4%	15.5%		43.9%	40.4%
1.0%		2.0%				50.0%
		20.0%
0.0%			0.0%				0.0%						0.0%
				NSA	CUBE	EXR	LSI		PSA

1. Source: Public reporting and S&P Global Market Intelligence.
2. Quarterly averages are computed using a simple average of year-over-year quarterly growth rates from second quarter 2015 through third quarter 2020.

10 | JANUARY 2021

NSA's Unique Structure and Geographically Diverse

Portfolio Mitigate Downside

Third Quarter 2020 Key Metrics

Same Store Revenue Growth			Same Store NOI Growth		#1 Core FFO/Share Growth
3%	1.2%	2.0%	0.2%			0.4%	14.0%	10.0%
2%	1.0%			12.0%
					10.0%
1%	0.1%	0.0%					8.0%	5.6%	4.1%
0.0%						6.0%
0%		-1.0%					4.0%
				1.6%			0.0%
						0.0%
-1%		-2.0%					2.0%
	1.5%-			-	2.7%
-2%	-3.0%				-2.0%
					-		-4.0%		3.7%-
-3%	2.7%-	-4.0%				3.7%-
						-6.0%
-4%		-5.0%					-8.0%
		NSA		CUBE	EXR	LSI	PSA

Source: Third quarter 2020 public reporting.

11 | JANUARY 2021

Differentiated PRO Structure Drives Growth

NSA Structure Promotes Internal and External Growth

ORGANIC GROWTH

THROUGH

SOPHISTICATED

PLATFORM TOOLS

EXTERNAL GROWTH

VIA MULTI-FACETED

ACQUISITION

STRATEGY

13 | JANUARY 2021

NSA's Tools and Decentralized Structure Deliver Results

Since IPO in April 2015, NSA has Delivered Average Year-over-Year Same Store Revenue Growth of

5.1% and Same Store NOI Growth of 6.8%

NSA CORPORATE

HEADQUARTERS

PROVIDES

PLATFORM TOOLS

REGIONAL AND

LOCAL OPERATIONS

IMPLEMENT

BEST PRACTICES

14 | JANUARY 2021

Structure Attracts Disciplined Growth-Oriented Operators

Successful regional operators join NSA as PROs rather than JV or sale options,

giving NSA access to top portfolios not otherwise available

CRITERIA

NSA

JV

SALE / EXIT

Liquidity / Monetization

Ability to Maintain Property Management

Participate in Upside

Enhance NOI Through Best Practices

Opportunity and Incentives to Grow Portfolio

15 | JANUARY 2021

Sector-Leading Growth Has Momentum

Multi-Faceted Acquisition Strategy Drives Growth

Number of

Properties

900

800	788
742
700	675
600
515
500	448
400

300

200

100

277

219

137

100

0

At Formation	2013	2014	2015	2016	2017	2018	2019	2020
	1	Captive Pipeline	2	3rd Party Acquisitions		3	New PROs	4	Strategic Joint Ventures

17 | JANUARY 2021

New PRO: Blue Sky Self Storage - Q1 2021

Total Portfolio

• Initial Portfolio: 7 NSA Properties (~$37 MM)
• Over 150 Captive Pipeline properties
• Expected closing: Q1 2021

Key Benefits

• Adds large captive pipeline focused on secondary and tertiary markets
• Adds several high-quality, newly developed assets (initial contribution and pipeline)
• Enhances third party acquisition opportunities via established industry relationships

18 | JANUARY 2021

Robust Long-Term Acquisition Pipeline

TOTAL

ACQUISITION

PIPELINE:

300+ $2.9

PROPERTIES BILLION

Captive Acquisition Pipeline(1)

• 130+ properties
• Estimated value $1.4 billion

Potential Buyout of JV Partner Interest

• 177 properties
• Estimated value $2.0 billion
• JV Partner ownership interest 75%
• Current estimated value of JV partner interest $1.5 billion(2)

1. Excludes Blue Sky Self Storage captive pipeline
2. The 75% third-party share of gross real estate assets is approximately $1.5 billion based on the historical book value of the joint ventures.

19 | JANUARY 2021

Supply Update

NSA's Top 15 Markets - Supply Outlook is Balanced

Supply Outpacing

Demand

Demand Outpacing

Supply

See description of methodology in Appendix: Definitions and Methodology.

21 | JANUARY 2021

Flexible Capital Structure Supports Future Growth

NSA's Flexible Capital Structure Positioned for Growth

BBB Rated			Key Credit Metrics
	30%	6.0x	4.7x
by
Kroll Bond Rating		Principal Debt	Net Debt/	Interest
Agency		/Total Enterprise	Adjusted EBITDA	Coverage Ratio
		Value

Total Enterprise Value $5.8 Billion

70%

Equity

30%

Debt

Capital for Growth		Attractive
$500MM	OP & SP		Dividend
	4.2%
Line of Credit	Equity
	Yield
Unsecured Revolving

Equity Capitalization: Large Investment by

12%	Management and PROs 6%
Preferred
SP Equity
Equity

26%

OP Equity

56%

Common

Equity

See description of terms in Appendix: Definitions and Methodology.

23 | JANUARY 2021

Investment Grade Balance Sheet Provides Strength and Flexibility to Finance Growth

All Figures Pro Forma $250M Debt Private Placement (1)

	Total Principal Debt		Weighted Average			Effective
	Outstanding		Maturity			Interest Rate
	$1.75B		6.0 Years			3.5%
								Debt Maturity Schedule
								($ in millions)
	$1,200
												$1,095.7
	$1,000
											Available
	$800											RLOC
	$600							$380.7			$500
	$400
										$270.2
	$200
	$3.6
	$0
	2021	2022	2023			2024		Thereafter
			RLOC		Term Loans		DPP 2019				DPP 2020		Mortgage

Minimal Interest Rate Risk

0%

Variable

100%

Fixed/Swapped

Conservative Debt Profile

13%

Secured

87%

Unsecured

1. Principal debt outstanding as of September 30, 2020, after giving pro forma effect to the issuance of senior unsecured notes. The Company entered into a debt private placement agreement on August 4, 2020 to issue $250MM of senior unsecured notes ($150M of 2.99% senior unsecured notes due August 5, 2030 and $100M of 3.09% senior unsecured notes due August 5, 2032), which funded on October 22, 2020,

See description of terms in Appendix: Definitions and Methodology.

24 | JANUARY 2021

PRO Structure Reduces Downside Risk in a Recession

PROs absorb a

disproportionate share of downside if NOI declines

This has the same effect as a lower leverage ratio

This also enhances dividend coverage

• Approximately 60% of NSA's wholly-owned portfolio has downside protection associated with PRO SP ownership interests.
• PROs absorb 50% of the NOI declines from current levels until the 6% preferred allocation to SP equity is reached for a PROs managed portfolio.
• PROs then absorb 100% of the NOI declines until the 6% preferred allocation to SP equity is eroded completely. The 6% preferred allocation to SP equity is non-cumulative.
• Given PROs absorb a disproportionate share of NOI declines, the lower cash flow volatility to NSA has the same effect as reduced financial leverage.
• Under the PRO structure, NOI would have to decline substantially further than under a normal structure before dividend coverage becomes at risk.

25 | JANUARY 2021

Appendix

Highly Fragmented Industry: Consolidation Opportunity

• Highly fragmented sector
• • ~48,000(1) self storage properties with over 30,000 operators(2)
  • Over $34 billion in annual revenue(2)
• NSA PRO growth primarily targets top private operators with 20 or more institutional quality properties in the top 100 MSAs
• • Top 100 operators, excluding public REITs, own and/or manage over 4,500 self storage properties(3)

Self Storage Top Operator Market Share

60%
47%	44%	40%
50%
40%
28%		27%	24%	17%	27%
30%
20%
10%
0%
Top 100	Top 50		Top 25	Top 5
			by Number of Facilities		by Rentable SF

1. 2020 Self-Storage Almanac based on total NRSF; survey excludes small, rural facilities.
2. Self Storage Association estimates.
3. Represents the number of facilities owned and/or managed by top operators, excluding NSA and other publicly traded entities.

Market Share by # of Facilities

Large Private	All Other Public
Operators
Operators
9%
17%

NSA

2%

All Other

Private

Operators

72%

27 | JANUARY 2021

Structure Incentivizes PROs To Perform

			Key Assumptions
• $100MM Purchase Price			•	50% Funded with Debt
• 6.3% Cap Rate				•	50% of Equity from PRO
Illustrative Capitalization	Illustrative Operating Cash Flow Allocation for Single Acquisition
									($000s)
			6,300	950
					2,000
REIT Equity
$25M
Debt					250	2,100	3,100
$50M

REIT

OP Units					1,500			1,536
(PRO)								49.6%
$10M					600	900
						PRO
							100	1,564
SP Units (PRO)							50.4%
$15M	Net Operating Income	Allocated REIT	Debt Service	Maint nance Capital	6% Pref rred	6% Subor inated	Excess CF 50/50 Split	Total CAD
	Net	Allocated	Debt	Recurring	6% Preferred	6% Subordinated	Excess CF	Total
	Operating	Corporate G&A	Service	Expenditures	Allocation to Common Allocation to SP Units	50/50 Split	CAD
	REIT	Capital	Allocation to	Allocation to
	Income	Corporate		Expenditures	Share Equivalents	SP Units
		Common Share
		G&A			Equivalents

Note: Proportion of SP units and OP units in each acquisition will vary. In general, the number of OP units issued will be capped at a level intended to provide a minimal level of operating cash flow ("CF") allocation on unreturned capital attributable to the OP units. Debt Service is reflective of interest expense and scheduled principal amortization. Post-contribution capital structure is reflective of cost and does not reflect market value. This hypothetical capital structure and cash flow allocation is for illustrative purposes only and reflects the terms of the partnership agreement: SP unit holders receive a 6% allocation of operating CF on their unreturned capital contributions after a 6% allocation on unreturned capital attributable to OP unit holders, and then share in the allocation of any excess cash flow 50/50 with OP unit holders. The REIT is allocated $36K of the operating CF allocated to OP units related to the 50/50 split of excess operating CF. The allocation of operating CF between the SP units and OP units is for purposes of determining distributions on SP units and does not represent the operating CF that will be distributed on OP units (or paid as dividends on NSA's common shar es). Any distribution of operating CF allocated to OP units will be made at the discretion of NSA (and paid as dividends on our common shares at the discretion of our board of trustees).

28 | JANUARY 2021

Structure Incentivizes PROs To Perform - Upside Scenario

Illustrative Scenario With $1.2 Million NOI Growth

($000s)

7,500950

2,000

			250	2,100			4,300
				1,500			1,964
				600	900
							786
						1,300
						464	1,550
						186
						650
Net Operating	Allocated REIT	Debt	Recurring	6% Preferred	6%	Excess CF	Total CAD
Income	Corporate G&A	Service	Capital	Allocation to	Subordinated	50/50 Split
			Expenditures	Common Share	Allocation to SP
				Equivalents	Units

REIT 1,964 45.7%

PRO 2,336 54.3%

Note: Proportion of SP units and OP units in each acquisition will vary. In general, the number of OP units issued will be capped at a level intended to provide a minimal level of operating cash flow ("CF") allocation on unreturned capital attributable to the OP units. Debt Service is reflective of interest expense and scheduled principal amortization. Post-contribution capital structure is reflective of cost and does not reflect market value. This hypothetical capital structure and cash flow allocation is for illustrative purposes only and reflects the terms of the partnership agreement: SP unit holders receive a 6% allocation of operating CF on their unreturned capital contributions after a 6% allocation on unreturned capital attributable to OP unit holders, and then share in the allocation of any excess cash flow 50/50 with OP unit holders. The REIT is allocated $464K of the operating CF allocated to OP units related to the 50/50 split of excess operating CF. The allocation of operating CF between the SP units and OP units is for purposes of determining distributions on SP units and does not represent the operating CF that will be distributed on OP units (or paid as dividends on NSA's common shares). Any distribution of operati ng CF allocated to OP units will be made at the discretion of NSA (and paid as dividends on our common shares at the discretion of our board of trustees).

29 | JANUARY 2021

Structure Protects NSA Shareholders - Downside Scenario

Illustrative Scenario With $0.8 Million NOI Decline

($000s)

5,500 950

2,000

			250	2,100			2,300
				1,500			1,500
				600	200	0	600
						200
Net Operating	Allocated REIT	Debt	Recurring	6% Preferred	6%	Excess CF	Total CAD
Income	Corporate G&A	Service	Capital	Allocation to	Subordinated	50/50 Split
			Expenditures	Common Share	Allocation to SP
				Equivalents	Units

REIT 1,500 65.2%

PRO 800 34.8%

Note: Proportion of SP units and OP units in each acquisition will vary. In general, the number of OP units issued will be capped at a level intended to provide a minimal level of operating cash flow ("CF") allocation on unreturned capital attributable to the OP units. Debt Service is reflective of interest expense and scheduled principal amortization. Post-contribution capital structure is reflective of cost and does not reflect market value. This hypothetical capital structure and cash flow allocation is for illustrative purposes only and reflects the terms of the partnership agreement: SP unit holders receive a 6% allocation of operating CF on their unreturned capital contributions after a 6% allocation on unreturned capital attributable to OP unit holders, and then share in the allocation of any excess cash flow 50/50 with OP unit holders. The REIT is allocated $0K of the operating CF allocated to OP units related to the 50/50 split of excess operating CF. The allocation of operating CF between the SP units and OP units is for purposes of determining distributions on SP units and does not represent the operating CF that will be distributed on OP units (or paid as dividends on NSA's common shares). Any distribution of operati ng CF allocated to OP units will be made at the discretion of NSA (and paid as dividends on our common shares at the discretion of our board of trustees).

30 | JANUARY 2021

PRO Structure - Shareholder Cash Flow Stability and Downside Protection

Shareholders benefit from less volatile cash flow and downside protection

Illustrative Impact on Operating Cash Flow Allocation for Single Acquisition(1)

	40%		NSA REIT Structure				Traditional REIT Structure
	30%	REIT CAD Growth	PRO CAD Growth			Total CAD Growth
	20%
Growth	10%
0%
/
(Decline)	(10%)
(20%)
CAD
(30%)
	(40%)
	(50%)
	(60%)
	(15%)	(12%)	(9%)	(6%)	(3%)	0%	3%	6%	9%	12%	15%

NOI (Decline) / Growth

Note: PRO CAD Growth is comprised of cash available to PROs through their ownership interests in both OP and SP units. REIT CAD Growth is comprised of cash available to all other equity stakeholders.

1. This illustrative sensitivity graph reflects the capital structure of a single acquisition and standard NSA operating CF allocation assumptions. This hypothetical capital structure and cash flow allocation is for illustrative purposes only and reflects the terms of the partnership agreement: SP unit holders receive a 6% allocation of operating CF on their unreturned capital contributions after a 6% allocation on unreturned capital attributable to OP unit holders, and then share in the allocation of any excess cash flow 50/50 with OP unit holders. This allocation of operating CF between the SP units and OP units is for purposes of determining distributions on SP units and does not represent the operating CF that will be distributed on OP units (or paid as dividends on NSA's common shares). Any distribution of operating CF allocated to OP units will be made at the discretion of NSA (and paid as dividends on NSA's common shares at the discretion of our board of trustees).

31 | JANUARY 2021

Self Storage: Higher Returns, Lower Volatility

Self Storage total returns have outperformed all other equity REIT sectors for 26 years while

experiencing the least volatility

Source: NAREIT.

32 | JANUARY 2021

Self Storage Has Outperformed Over the Past 26 Years

Even in the worst five-year period, self storage delivered >7% total shareholder return per year

Source: NAREIT.

Sector Average Annual Total Shareholder Returns for Each 5-Year Period (All US Public Equity REITs) Over the Past 26 years ended 2019. Annual total shareholder returns calculated as five-year IRRs on NAREIT's individual property sector total return index levels, for 22 separate 5-year periods from 1994-1998 through 2015 - 2019. Lowest average annual return periods for each sector are the five years ended: Self storage 2002; Apartments 2009;Health Care 1999; Retail 2009; Office 2011; Industrial 2011; Diversified 2011; Lodging / Resorts 2002.

33 | JANUARY 2021

Earnings Per Share - Diluted to Funds From Operations ("FFO") and Core FFO Per Share and Unit Reconciliation

		Three Months Ended September 30,
		2020	2019
Earnings (loss) per share - diluted	$	0.15	$	(0.20)
Impact of the difference in weighted average number of		(0.05)		0.07
shares(1)
Impact of GAAP accounting for noncontrolling interests,		0.08		0.26
two-class method and treasury stock method(2)
Add real estate depreciation and amortization		0.28		0.30
Add Company's share of unconsolidated real estate		0.04		0.06
venture real estate depreciation and amortization
FFO attributable to subordinated performance unitholders		(0.07)		(0.10)
FFO per share and unit	$	0.43	$	0.39
Add acquisition costs		0.01		0.01
Core FFO per share and unit	$	0.44	$	0.40

1. Adjustment accounts for the difference between the weighted average number of shares used to calculate diluted earnings per share and the weighted average number of shares used to calculate FFO and Core FFO per share and unit. Diluted earnings per share is calculated using the two-class method for the company's restricted common shares and the treasury stock method for certain unvested LTIP units, and assumes the conversion of vested LTIP units into OP units on a one-for-one basis and the hypothetical conversion of subordinated performance units, and DownREIT subordinated performance units into OP units, even though such units may only be convertible into OP units (i) after a lock-out period and (ii) upon certain events or conditions. For additional information about the conversion of subordinated performance units and DownREIT subordinated performance units into OP units, see Note 10 to the Company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission. The computation of weighted average shares and units for FFO and Core FFO per share and unit includes all restricted common shares and LTIP units that participate in distributions and excludes all subordinated performance units and DownREIT subordinated performance units because their effect has been accounted for through the allocation of FFO to the related unitholders based on distributions declared.
2. Represents the effect of adjusting the numerator to consolidated net income (loss) prior to GAAP allocations for noncontrolling interests, after deducting preferred share and unit distributions,

and before the application of the two-class method and treasury stock method, as described in footnote (1).

Source: Q3 2020 Company financials.

34 | JANUARY 2021

Net Income to Net Operating Income Reconciliation

	Three Months Ended September 30,
	2020		2019
Net income	$	21,411	$	16,514
(Subtract) add:
Management fees and other revenue		(5,901)		(5,374)
General and administrative expenses		10,818		11,271
Other		479		768
Depreciation and amortization		28,933		27,598
Interest expense		15,262		14,432
Equity in (earnings) losses of unconsolidated real
estate ventures		(37)		1,214
Acquisition costs		596		321
Income tax expense		346		223
Non-operating expense		120		8
Net Operating Income	$	72,027	$	66,975

Source: Q3 2020 Company financials.

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Net Income to EBITDA & Adjusted EBITDA Reconciliation

	Three Months Ended September 30,
	2020		2019
Net income	$	21,411	$	16,514
Add:
Depreciation and amortization		28,933		27,598
Company's share of unconsolidated real estate venture
depreciation and amortization		3,830		5,197
Interest expense		15,262		14,432
Income tax expense		346		223
EBITDA	$	69,782	$	63,964
Add (subtract):
Acquisition costs		596		321
Equity-based compensation expense		1,183		1,153
Adjusted EBITDA	$	71,561	$	65,438

Source: Q3 2020 Company financials.

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Definitions and Methodology

Total Enterprise Value: The sum of the Company's debt principal outstanding plus the perpetual preferred and common equity (on a fully diluted basis) valued at the closing price per share, as of September 30, 2020, of $26.49 and $32.71, respectively. SP equity is assumed converted using the hypothetical conversion ratio for the trailing twelve months ended at each respective quarter end, which we publicly disclose each quarter. See Supplemental Schedule 4 to each of our earnings releases which are furnished with the U.S. Securities and Exchange Commission.

Net Debt / Adjusted EBITDA: Total debt less cash and cash equivalents, divided by annualized Adjusted EBITDA for most recently reported quarter.

Interest Coverage Ratio: Computed by dividing Adjusted EBITDA by interest expense for most recently reported quarter.

EBITDA: Net income (loss), as determined under GAAP, plus interest expense, loss on early extinguishment of debt, income taxes, depreciation and amortization expense and the Company's share of unconsolidated real estate venture depreciation and amortization.

Adjusted EBITDA: EBITDA plus acquisition costs, organizational and offering expenses, equity-based compensation expense, losses on sale of properties and impairment of long- lived assets, minus gains on sale of properties and debt forgiveness, and after adjustments for unconsolidated partnerships and joint ventures.

Dividend Yield: Calculated based on current quarterly annualized dividend of $1.36 divided by market closing price of NSA's common shares on September 30, 2020 of $32.71.

Effective Interest Rate: Incorporates the stated rate plus the impact of interest rate cash flow hedges and discount and premium amortization, if applicable. For the revolving line of credit, the effective interest rate excludes fees which range from 0.15% to 0.20% for unused borrowings.

Page 21 - Supply Graph Methodology

1. We estimate supply growth for each market as follows: first, we add together the expected total net rentable square footage attributable to (i) all Fill-Up and Under Construction Properties and (ii) 25% of all Planned and Prospective Properties. Properties refers to all self storage properties (including NSA's) in the MSAs set forth above, tracked and reported by Yardi Matrix. Fill-Up are stores that have opened in the 24-month period prior to September 25, 2020. Under Construction are those currently under construction. Planned and Prospective are those with a permit in place or an approval pending to build. We divide this number by the total net rentable square footage of all properties in each market.
2. We estimate demand growth in each market by adding together (i) Experian's 5-year projections for the percentage increase in household growth in each market plus (ii) 5%, which represents our assumptions with respect to increased demand in each market irrespective of population growth.
3. The ratio of supply growth to demand growth is calculated based upon NSA's estimates and assumptions as set forth in footnotes 1 and 2 above. There can be no assurance that supply growth and demand growth in any market will correspond to such estimates. Some or all of our competitor's properties in these markets may not fill up, reach completion or be built at all or on the schedule currently contemplated and increases in population and non-population related demand may differ from our estimates and assumptions.
4. Circle sizes correspond to each MSA's % share of NSA's projected 2020 revenue, with JV properties accounted for at NSA's 25% share.

37 | JANUARY 2021

Contact Us

Investor Relations

George Hoglund, CFA

Vice President - Investor Relations 720-630-2160 [e-mail]

Marti Dowling

Director - Investor Relations 720-630-2624 [e-mail]

Corporate Headquarters

National Storage Affiliates Trust 8400 East Prentice Avenue 9th Floor

Greenwood Village, CO 80111

Website

www.nationalstorageaffiliates.com

38 | JANUARY 2021

National Storage Affiliates

NYSE: NSA